What is the minimum down payment required for owner-occupied properties with 3-4 units?

For owner-occupied properties consisting of 3 to 4 units, the minimum down payment requirement is indeed 10%. This is a specific guideline set by financial institutions and mortgage insurers in Canada, considering the higher risk associated with multi-family units compared to single-family homes.

When purchasing a property with 3 or 4 units, lenders require a larger down payment to mitigate their risk. A 10% down payment helps ensure that the homeowner has a significant financial stake in the property and can cover potential financial fluctuations, such as vacancies or maintenance costs, that are more likely to arise in multi-unit dwellings.

This down payment requirement contrasts with that for single-family homes, where a lower down payment of 5% may be acceptable under certain conditions, demonstrating the heightened caution lenders exercise when dealing with properties that host multiple rental units.